The Securities and Exchange Commission Ghana (SEC) says it is setting up an investor protection fund to compensate and cushion affected investors whose funds get locked up through no fault of theirs.
Head of Policy and Research at the Securities and Exchange Commission (SEC), Emmanuel Ashong-Katai stated: “Investor Protection Fund, in fact, it is in many countries so that if an investor loses his money from a licensed operator we can go to the fund and use it to compensate that investor.”
He further submitted: “The Security and Exchange Commission, Bank of Ghana, government, are going to put some money into it, then all licensed operators will too put some money into it and then any income we derive from the investor like the fees, we are going take a little bit into it. So we are going to look at various sources of funds to create the fund for the protection of investors.”
At a public lecture in Kumasi on Ponzi schemes, Ashong-Katai mentioned there are two types of investor categories; Qualified Investors and Ordinary Investors.
Qualified investors being those with investor knowledge like bankers, accountants, institutional investors like pension fund managers and ordinary Ghanaian investors being those who lack an understanding of how the financial ecosystem works. It is they Mr. Ashong-Katai stated the fund will cater for in the event of a breach by a licensed operator.
(By Michael Eli Dokosi)